Cigarette segment has delivered second consecutive quarter of positive volume growth, said ICICI Direct Research which believes the company should be able to end the year at a full year volume growth of 3-4 percent.
The research house continued to remain positive on the company given robust and encouraging growth numbers coming from its core segments.
ITC said its FMCG business reported revenue at Rs 8,186 crore, a growth of 11.3 percent over corresponding quarter last year. “On the operational front, FMCG EBIT grew by 9.8 percent year-on-year to Rs 3,638 crore but margin contracted 60 bps in Q2.”
Overall company’s EBITDA (earnings before interest, tax, depreciation and amortisation) increased 11.8 percent to Rs 4,206 crore and margin expanded by 150 bps to 38 percent compared to year-ago.
Hotels segment revenue during the quarter was up 20.8 percent at Rs 362.5 crore with its EBIT growing 17.70 percent YoY.
ITC said its agri business revenue registered a healthy 12.8 percent year-on-year growth at Rs 2,220 crore, but at operational level, its EBIT degrew by 7.9 percent and margin contracted 240 bps in the quarter ended September 2018.
Paper segment revenue, which contributed nearly 13 percent to total business, increased 8.8 percent year-on-year to Rs 1,424 crore and its EBIT grew by 13.4 percent with margin rising 90 bps in Q2.
At 14:18 hours IST, the stock was quoting at Rs 277.60, down Rs 9.65, or 3.36 percent on the BSE.